The initial public offering (IPO) of integrated Engineering, Procurement, and Construction (EPC) company Globe Civil Projects sailed through a strong first day of bidding, with the issue subscribed nearly five times overall by 2 PM on Tuesday.

According to National Stock Exchange (NSE) data, the mainline issue received bids for 5,80,91,043 shares against the 1,17,32,392 shares on offer, reflecting a subscription rate of approximately 4.95 times as of 2 PM. Earlier in the day, by 12 PM, the IPO was subscribed 1.38 times, with investors bidding for 1.62 crore equity shares compared to the 1.17 crore shares on offer. The three-day bidding period, which opened on June 24, will conclude on June 26.

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Investor participation was broad-based, with Qualified Institutional Buyers (QIBs) leading the demand, subscribing 8.05 times to their allocated portion by afternoon, though initial midday data indicated no bids from QIBs. Non-institutional investors subscribed 3.84 times overall, while retail investors’ allocation saw a strong subscription of 4.87 times, up from 1.98 times earlier in the day.

The company has priced its shares between Rs 67 and Rs 71 apiece. Investors can apply for a minimum of 211 equity shares and multiples thereafter.

Market watchers remain cautiously optimistic. SBI Securities maintains a ‘neutral’ outlook on the IPO, highlighting that the price-to-earnings (P/E) ratio of 1.4 times as of December 2024 is relatively higher than peers. The brokerage also noted that Globe Civil Projects’ relatively small scale of operations could impact financial performance if any project faces delays.

“Investors are advised to review the financial performance of the company post listing,” SBI Securities said.

Similarly, Canara Bank Securities has assigned a ‘neutral’ rating, suggesting that investors with a long-term perspective may consider the IPO.